Monday, July 29, 2013

Oil prices down in Asian trade





SINGAPORE—Oil was lower in Asian trade on Tuesday as investors paused ahead of a US central bank meeting, hoping for clear signals on stimulus measures.


New York’s main contract, West Texas Intermediate for delivery in September, was down 27 cents at $104.28 a barrel in mid-morning trade, and Brent North Sea crude for September eased 13 cents to $107.32.


Analysts said investors were taking a breather from a recent rally while waiting for a meeting Tuesday of the US central bank’s policy-setting Federal Open Market Committee (FOMC).


Focus will be on a clear timeline for the Fed to reel in its $85 billion-a-month stimulus program, with some analysts saying it could come as early as September.


“At the July 30-31 FOMC meeting, we expect an ambiguous signal from the Fed about the exact timing of tapering, causing markets to rethink whether September really is a done deal,” analysts at Bank of America Merrill Lynch said in a note.


“The majority of voters [in the committee] are likely still looking to move before year-end,” they said.


“However, given the weak GDP and inflation data, there probably is not a strong consensus about exactly when to pull the trigger.”


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Tags: Asia , Commodities , Energy , oil price , Trade



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